Which one of the following statements is correct if you purchase an item with credit terms of 3/15, net 45? Multiple Choice One-third of your purchase is due in 15 days and the rest is due in 45 days. If you pay within 15 days, you will receive a discount of 3 percent. If you pay within 3 days, you wwill receive a discount of 15 percent. If you do not pay within 15 days, you will be charged interest at a rate of 3 percent per month.
Q: The previous statement for your credit card had a balance of $770. You make a payment of $360 but…
A: Given information: Previous balance is $770 Payment of $360 Additional purchase of $220 APR of 24%
Q: A store will give you a 4.00% discount on the cost of your purchase if you pay cash today.…
A: Given information : Discount rate = 4% Time period for payment due = 1 month Purchase price…
Q: A store will give you a 4.50% discount on the cost of your purchase if you pay cash today.…
A: The implicit rate of borrowing is the cost paid in the terms of discount by the customer if the…
Q: This card has an introductory APR of 0%. Credit cards often do this to entice customers.…
A: Introductory APR of 0% means that the card holder can make purchases or transfer a balance without…
Q: Assume that you start with a balance of $3900 on your credit card.During the first month you charge…
A: Here, Balance on Credit Card is $3900 APR is 29% Charges for first Month is $400 Charges for Second…
Q: A store will give you a 3% discount on the cost of your purchase if you pay cash today. Otherwise,…
A: Customers who choose to defer payment for the month will be letting go of the discount that they…
Q: Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount x for…
A:
Q: A merchant buys a bill of goods requiring the payment of $1,500 at the end of 180 days. He is…
A: Cash management involves decision regarding whether, to make early payments to the suppliers and…
Q: What is the highest rate, simple interest at which the buyer can afford to borrow money in order to…
A: Highest Simple Rate: The highest simple rate is also known as the break-even rate. It is computed by…
Q: A company is offering a 4.9% discount to receivables if they agree to pay within 45 days. The…
A: A credit discount is a discount offered to the borrower of money by the lender of money if the…
Q: You have a credit card with an APR of 22.8%. You begin with a balance of $1000, in response to which…
A: Finance charge Any fees that represent the credit cost, or borrowing cost. It is an interest accrued…
Q: Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: You wish to buy a $10,000 dining room set. The furniture store offers you a three-year loan with an…
A: Given information: Present value or principal value is $10,000 Number of years of loan is 3 Interest…
Q: c. What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use…
A: Given, Invoice amount=$ 1,500 1/15, net 60, basis which means if company y pays within 15 days then…
Q: Complete the following take table. Round your answer to the nearest cent. Table 1 month- Previous…
A: Month 1: Outstanding balance in beginning = 610$ APR = 24% Finance charge = 610$ * 24% * 1/12 =…
Q: Assume that you start with a balance of $4000 on your Visa credit card. During the first month, you…
A: Finance charges are levied by credit card companies if credit card holder fails to make payment on…
Q: h discount terms for a $500 purchase are 4/10 net 30, the number 10 refers to Multiple Choice the…
A: Cash discount terms 4/10 net 30 means payment has to be made within 10 days of purchase to avail…
Q: A store will give you a 4.00% discount on the cost of your purchase if you pay cash today.…
A: Let's assume the cost of purchase is C. On immediate payment,Discount = 4%Hence, the discounted cost…
Q: A car dealer carries out the following calculations.What is the annual percentage rate? List…
A: The APR is 19.59%.
Q: A supplier is offering your firm a cash discount of 2 percent if purchases are paid for within ten…
A: We will have to compute the effective rate of cash discount being offered by the supplier.
Q: Find the discount and proceeds on a $3,240 face-value note for six months if the discount rate is…
A: Net Proceeds: It is the amount received by an individual after deducting a discount and expenses.
Q: ur customers has just made a purchase in the amount of $28,000. You have agreed to payments of $590…
A: The time period to pay the loan will depends on the interest rate and compounding of loan and…
Q: What is the implicit borrowing rate being paid by customers who choose to defer payment for the…
A: Information Provided: Discount rate = 4.75% Amount due (time) = In 1 month
Q: Assume that you start with a balance of $3600 on your credit card. During the first month, you…
A: Given Starting balance is $3600 First month charge is $400 Second month charge is $550
Q: Big Dom’s Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like…
A: APR = given monthly rate * 12 months
Q: One of your customers has just made a purchase in the amount of $26,400. You have agreed to payments…
A: A loan is a debt amount borrowed by one person from another person at a predetermined financial…
Q: You have a credit card with an APR of 20%. You begin with a balance of $600 in response to which you…
A: Given: APR = 20% Beginning balance = 600
Q: Breeze Corp. is planning to change its credit terms from 4/10, n/30 to 5/15, n/35. Currently, 50% of…
A: Days sales outstanding refer to average number of days that an organisation or a company takes to…
Q: A store will give you a 4.00% discount on the cost of your purchase if you pay cash today.…
A: Cash Discount is the discount provided by the sellers to encourage buyers to make payment of their…
Q: a) Calculate the amount of new purchases made this month. b) What is your new balance? c) The…
A: The attached image is a Credit card Statement. Every month, the statement is shared to the account…
Q: A credit card has a 21.99% APR, a minimum monthly payment of 3.15%, and a current monthly statement…
A: A credit card is a pay later facility provided by the banks to its customers. Banks charge interest…
Q: %, collections within the discount period is 40% and the average age will be 22 days. The variable…
A: The costs decline significantly with experience due to the learning curve phenomenon and efficiency.…
Q: A store will give you a 2.75% discount on the cost of your purchase if you pay cash today.…
A: Given: Discount rate is 2.75%
Q: A man makes a simple discount note with a face value of $2,700, a term of 120 days, and a 9%…
A: Formula: Discount amount = Face value of note x discount rate x number of days Multiplying face…
Q: A store will give you a 5.00% discount on the cost of your purchase if you pay cash today.…
A: Calculation of the implicit borrowing rate being paid by customers: Let's assume that the cost of…
Q: A manufacturer offers a 30/25 chain discount if the invoice subtotal is above $1,000. If the list…
A: calculation of chain discount are as follows
Q: t purchased new goods worth 100,000 EUR from your supplier. Your supplier offers you to pay within…
A: Supplier provide credit for payment but due to this default on loan occurs but due to this they give…
Q: Your credit card has a limit of $3,000. You have charged goods totaling that amount. Your yearly APR…
A: Finance charges of 1 month = Credit limit availed * APR % * 1 month / 12 months
Q: A store will give you a 3.75% discount on the cost of your purchase if you pay cash today.…
A: Monthly rate is calculated below:
Q: A merchant buys a bill of goods requiring the payment of 1500php at the end of 180 days. He is…
A: Rate of discount=5%Purchase price=1500
Q: A couch is priced at $980.00 if bought for cash. On the stores installment plan, a down payment of…
A: Computation of finance charge:
Q: A washer-dryer combination can be purchased from a department store by making monthly credit card…
A: Amortized Loan: Amortized loan is a type of loan in which the borrower would pay periodic payments…
Q: The manager of Steve’s Audio has approved Daisy’s application for 24 months of credit at maximum…
A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.
Q: You have a credit card with an APR (Annual Percentage Rate) of 12%. You begin with a balance of…
A: APR = 12% Beginning Balance = $200 Payment = $75 1st month charge = $50 2nd month charge = $60
Q: Which of the following terms of trade credit is the more expensive? a. A 3 percent cash discount if…
A: Calculating the effective annual interest rate for the credit terms 3/15, net 45. We have,The…
Q: You wish to buy a $9,700 dining room set. The furniture store offers you a 2-year loan with an APR…
A: The question is based on the concept of Financial Management.
Q: What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. A discount of 2…
A: Given, credit terms = 2/10, n/30 n/30 indicates that the payment should be made within 30 days from…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A store will give you a 3% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)A store will give you a 1.00% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? Note: Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %A store will give you a 4.75% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month?
- A store will give you a 3.75% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who chose to defer payment for the month?You buy goods at a list price of $1,100. If you receive a trade discount of 30% and terms are “2/15, n/45,” what amount must you pay if you pay within the discount period?A store will give you a 1.75% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal points. Effective Annual Rate: ___%
- When goods are sold to a customer with credit terms of 2/15, n/30, customers will receive a 2% discount if they pay within 15 days. O receive a 2% discount if they pay 15% of the amount due within 30 days. O receive a 15% discount if they pay within 2 days. O receive a 15% discount if they pay within 30 days.What do the credit terms, 2/15, n/30 mean? Multiple Choice O A two percent discount can be deducted if the invoice is paid after the fifteenth day following the sale, but before the thirtieth day. A two percent discount can be deducted if the invoice is paid before the fifteenth day following the date of the sale. A fifteen percent discount can be deducted if the invoice is paid within two days following the date of sale. A two percent discount can be deducted for a period up to thirty days following the date of sale.Assume that you start with a balance of $3900 on your credit card.During the first month you charge $400. During the second month you charge $650 and make a payment of $280. Assume that your credit card charges a 29% APR and each month you make the minimum payment of 2.5% of the balance. Complete the following table. Round your answer to the nearest cent. Month 1 Previous balance- $3900 Finance charge- $94.25 Purchase- 400 Payment ?97.50 New balance? Month 2 Previous balance- finance charge- purchase- payments- New balance
- Assume that you start with a balance of $3600 on your credit card. During the first month, you charge $400, and during the second month, you charge $550. Assume that your credit card charges a 29% APR and that each month you make only the minimum payment of 2.5% of the balance. Complete the following table. (Round your answers to the nearest cent.) Finance Charge (+) Previous Purchases Payments (-) New Balance Balance (+) Month 1 Month 2A store will give you a 4.00% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate (effective annual rate) being paid by customers who choose to defer payment for the month?You have a credit card with an APR (Annual Percentage Rate) of 12%. You begin with a balance of $200, in response to which you make a payment of $75. The first month you make charges amounting to $50. You make a payment of $75 to reduce the new balance, and the second month you charge $60. Previous balances, payments and purchases for the months 1 and 2 are given in the table below: Month Previous Balance Payment Purchases Finance Charge New Balance 1 $200 $75 $50 a:$ b:$ 2 $ $75 $60 c:$ d:$